It is true that today one of the hottest things are cash back credits cards. Many people understand the concept behind cash back credit cards today. The way the concept works is not a secret anymore. The logic is very simple. The companies who offer the credit cards will be willing to give you money back after you make use of their credit card in purchases.
There are many benefits for you as the customer. It is possible for you to utilize the card to your benefit when you are making purchases. To make the most out of this arrangement, you will need to read this article to the end.
As you look for the best cash back credit card, identify the one that gives you the most money back. Since the cash back is calculated in percentage, look for the card with the highest percentage. Although many cards give a 1% inventive, there is more to save when you use the card more frequently. Again, there may be increased percentages on some purchases like gas and food.
However, it is prudent to avoid using the cash back cards for all outlay. It is best to use cash back credit cards for utility bills. Such bills are like gas that you pay every month.
It is best to wait until the invoice becomes due and then deposit the funds into your bank. After this, payment can be done by using the cash back card. On arrival of the card account, it will be best to ensure that you use the savings that you have made to pay the entire credit card. This will ensure that you do not pay any interest and you will also get your cash back.
Again, you will need to look at the fees before you settle for any cash back reward card. It is not wise to ignore the fact that there are fees to be paid when it comes to cash back credit cards. The average APR is 14.99% but there are some that go for as high as 18.99% or as low as 8.99%. Due to this huge gap in the charges, it is best to look for the cad that offers least and meets your needs.
Again, there are other players in dictating the interest rates for the fees. Of great significance are factors like your credit score and credit rating as well. Still, your credit card company is a great determinant. The APR are not the only fees to consider. Other fees to consider are balance transfer fees. Put all these things into consideration before making a decision.